NEW YORK (TheStreet) -- American Realty Capital Properties (ARCP) shares are dropping, down -2% to 12.48, following reports that one of its largest stakeholders is not happy with its increased acquisition plans.
Marcato Capital Management sent the company a letter stating in part that "The company is engaging in too many transformative transactions too quickly," and that "ARCP should pause on large-scale transaction activity and give investors a chance to see multiple quarters of clean financial results."
Marcato, which owns 21.8 million shares of ARCP, objects to the firm increasing its acquisition target for the year from $3 billion to $4.5 billion.
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TheStreet Ratings team rates AMERICAN RLTY CAP PPTY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN RLTY CAP PPTY INC (ARCP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."